Nationwide preferred bidder for Dunfermline social mortgages
The Bank of England has named Nationwide as its preferred bidder to buy the social housing loans business of Dunfermline.
When Dunfermline building society had to be rescued in March, its savings business and branches were taken on by Nationwide.
The social housing loans were transferred to a Bank of England subsidiary, DBS Bridge Bank, and now it looks set to go to Nationwide.
"It is business as usual for the business's customers," a Bank of England statement read.
"They can contact the business in the usual way and should continue to make repayments as normal.
"Customers of other parts of the former Dunfermline Building Society's businesses now owned by Nationwide, or operated out of the Building Society Special Administration Procedure, are unaffected."
Dunfermline fell after it was revealed the society was engaged in substantial commercial property lending worth over £650 million, as well as the purchasing over £150 million of 'high-risk' mortgages, from two American firms including a subsidiary of Lehman Brothers, just before the global market for such loans completely collapsed.
It was also revealed Dunfermline had to write-off £10 million from the purchase of a £31 million IT system - leaving a loss of over £24 million for last year.
Nationwide took over Dunfermline's core assets in return for a £1.6 billion payment from the taxpayer.
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